What steps INDIA should take??..........

"One in 10 Americans still could not find work, many businesses have shuttered and small towns and rural communities have been hit especially hard"............ statement made by U.S president Mr. Barack Obama, on 28th of jan 2010, at his first state of the union address against a backdrop of an American public worried about the fallout.

And on the same day he announced " not to provide tax sops for the firms moving employment abroad - outsourcing" coz estimates tells that around 3.3 million American jobs will be lost to Outsourcing in 15 years ending 2015. In the U.S., outsourcing means firing full-time workers and shipping their jobs to a less developed country where wages are lower and labor laws are more lax and one of the fastest-growing destinations for outsourced jobs is none other than the U.S.

But for INDIA the situation will get worsen with such announcement by American president. More than 660 multinational companies each bring business worth more than US$1 million (euro820,000) annually to India, where hourly software development rates range between US$18 (euro14.72) and US$26 (euro21.26). India controls 44 percent of the global offshore outsourcing market of software and back-office services. The article indicates that as many as 400 of the Fortune 500 companies either have their own centers in India or are currently outsourcing work to Indian technology companies.

But i feel the main issue here to ponder or to be worried for is, 'INDIA' being in a similar situation of jobless employees or even worse for more than 5 decades, never took a step like this ever....... :(

Will INDIAN politicians, instead of just starting of with new charity fund every time, god knows where their money goes, ever able to take such steps to improve condition of jobless and poor people in INDIA and what u suggest those steps should be??//....

Question of the Day

What started with the need to finance two voyages: The Muscovy Company's attempt to reach China via the White Sea north of Russia, and the East India Company's voyage to India and the east?

Posted By: Preet Varun Singh

Need placement? There are 5 million new jobs.

India's emergence as a centre of manufacturing for vehicle makers will result in the hiring of 5 million new employees over three years, consisting of both direct and indirect employment.
According to Siam, a further seven million will be added in the period from 2012 to 2016, almost doubling the count to 25 million from the present 13 million; This would make the automotive sector one of the largest job generating sectors in India in the current decade.
Some say India has got one of the largest populations but does India have the capacity to absorb the increasing manpower. So this is one part of the answer.
Of the 5 million new jobs in the next three years, about 25 per cent will be for managerial functions, 60 per cent will be for skilled labour and the remaining lot will comprise unskilled labour.
Nissan and Renault , Toyota Kirloskar Motors, Honda Siel Cars, Mahindra & Mahindra, Tata Motors , Maruti Suzuki, General Motors], Ford, Volkswagen and Mercedes-Benz are among several other large, medium and small component supplying companies making huge investments in setting up new production plants across the country.
Some companies are investing separately in vehicle design and technical centres which play a pivotal role in all research and development (R&D) activity. India has become the hub for developmental activities of new cars for not only Asia but established markets such as the US and Europe.

Posted By: Preet Varun Singh

Logical Brain Teasers

Q1. You are at a game show and there are three closed doors. There is a prize hidden behind one of the doors and the game show host knows where it is. You are asked to choose a door. The game show host then opens one of the other two doors showing that it is empty and asks you if you would like to change your selection. Should you stick to your original selection? Also specify the logic behind.

Q2. Six drinking glasses stand in a row, with the first three full of juice and the next three empty. By moving only one glass can you arrange them so empty and full glasses alternate?

Posted by Mohit Banka

Ever wondered why Ratan Tata is not in forbes billionaire list?

I came across really interesting piece of information, so thought of sharing with the visitors of www.theqrio.com . So the real story of Ratan Tata is

They Want It All. And Why Not.

U.S based Sara Lee’s global household business is up for sales. With brands like Ambi Pur, Kiwi, Hit and Good Knight in its kitty, Sara Lee deal sure looks good. And big FMCG producing corporations globally have shown their interest in buying it. So has its partner in Indian JV, Godrej.

10 million Google Shares up for grab!!

There is good news for all Google enthusiasts who want to be an owner of dream firm. Google Inc founders Larry Page and Sergey Brin plan to sell about 10 million of the company's shares over the next five years.

Question of the Day

The Ad campaign of which company is this. Also identify the social cause that is taken up by the company.

Posted by Preet Varun Singh

India to be 3rd largest economy by 2012

According to a report by PricewaterhouseCoopers (PwC), India could become the world’s third largest economy by purchasing power parity (PPP), overtaking Japan in 2012. This would be almost 20 years ahead of Goldman Sachs’ projection of 2032 in its BRIC (Brazil, Russia, India and China) report.

India is also expected to grow faster than China after 2020. China, which was projected to become the world’s largest economy by 2041, now looks set to achieve the distinction sometime around 2020, the PwC report said.

Posted by Preet Varun Singh

Question of the Day

His first product was soap. In order to sell the soap, he offered free baking powder. The baking powder became more popular than the soap so he switched to that. To help sell his baking powder, he began offering something else for free. Well, that became even more popular then and today he leads in the production of that particular product. Who am I talking about and what product?

Posted by Preet Varun Singh

Big Buck Advertising Industry

Whos King of Advertisement Space? It's Aamir if you are talking in Indian context. The 'third idiot' just signed a 3 year deal to promote Etisalat, new entrant into Indian telecom space, for Rs. 35 crore. This is the biggest Indian endorsement deal ever. UAE based Etisalat is the 13th largest mobile network operator in the world with a total customer base of staggering 94 million connections.

Tesco plans to open 1st Cash & Carry outlet in India this year

UK’s biggest retailer has finally chosen its partner for Indian operations, to complement its strategy of growing overseas following its operations in countries like US, Korea and China. Tesco has chosen Tata Group’s retail arm, Trent Ltd to start its Indian operations.

Kraft Gobbles Cadbury

Bourneville based Cadbury’s desperate attempt to stay independent is finally over, with the UK group’s board accepting an irresistible revised offer of £11.9-billion ($19.7 billion) offer from US-based Kraft Foods after almost four months of opposition. The makers of Toblerone chocolate and Oreo cookies launched a hostile bid for Cadbury in September last year, but struggled to find favour with the UK firm, which as recently as last week derided Illinois-based Kraft as an “unfocused conglomerate”.

The Cadbury-Kraft combine will be the world’s second-largest chocolate and gums company behind Mars-Wrigley. The deal is also smaller than the $23 billion US chocolate maker Mars paid for gums maker Wrigley in 2008.

The deal will make the $42-billion makers of Toblerone chocolates and Nabisco cookies a market leader in India where it made several unsuccessful attempts to either form a joint venture with or acquire significant stake in a domestic company.

Cadbury, with products like Dairy Milk and 5-Star bars, has a 70% share in the Indian chocolate market. The Rs 2,000 crore-Cadbury India’s distribution network of an estimated 1.2 million outlets will help Kraft reach every nook and corner of the country.

Combined group to be No.1 in chocolate & confectionery, overtaking Mars.

Group will have 40 confectionery brands with annual sales in excess of $100 m each.

Increased scale for both cos in developing markets such as Brazil, Russia & China, where Kraft has a stronger presence, and India, Mexico and South Africa, where Cadbury holds leading positions.

Posted by Preet Varun Singh

6 automobile testing centres in india by 2011

The six testing centres being set up by the National Automotive Testing and R&D Infrastructure Project (NATRiP, under the ministry of heavy industries) across India to create state-of-the-art research and testing infrastructure for automobiles are likely to be operational by September 2011.

The testing track for high speed vehicles (having speeds between 250 kmph and 350 kmph) at the Indore centre would be operational by 2012.

The projects aims at creating core global competencies in automotive sector in India and facilitate seamless integration of the Indian automotive industry with the world as also to position the country prominently on the global automotive map.

Six testing centres across India to set up test facilities at Manesar, Chennai, Indore, Pune, Ahmednagar (western region) and Silchar.

The total project cost for these centres is Rs 1,718 crore (Rs 17.18 billion), which would be escalated to Rs 1,800 crore (Rs 18 billion).

Posted by Preet Varun Singh

All you want to know about GST

One of the biggest taxation reforms in India — the Goods and Service Tax (GST) — is all set to integrate State economies and boost overall growth.

GST will create a single, unified Indian market to make the economy stronger.

Finance Minister Pranab Mukherjee while presenting the Budget on July 6, 2009, said that GST would come into effect from April 2010.

The implementation of GST will lead to the abolition of other taxes such as octroi, Central Sales Tax, State-level sales tax, entry tax, stamp duty, telecom licence fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services, et cetera, thus avoiding multiple layers of taxation that currently exist in India

What is GST?

Goods and Services Tax — GST — is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level.

Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain.

The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain.

Experts say that GST is likely to improve tax collections and boost India’s economic development by breaking tax barriers between States and integrating India through a uniform tax rate.

What are the benefits of GST?

Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower tax rate by increasing the tax base and minimising exemptions.

It is expected to help build a transparent and corruption-free tax administration. GST will be is levied only at the destination point, and not at various points (from manufacturing to retail outlets).

Currently, a manufacturer needs to pay tax when a finished product moves out from a factory, and it is again taxed at the retail outlet when sold.

How will it benefit the Centre and the States?

It is estimated that India will gain $15 billion a year by implementing the Goods and Services Tax as it would promote exports, raise employment and boost growth. It will divide the tax burden equitably between manufacturing and services.

What are the benefits of GST for individuals and companies?

In the GST system, both Central and State taxes will be collected at the point of sale. Both components (the Central and State GST) will be charged on the manufacturing cost. This will benefit individuals as prices are likely to come down. Lower prices will lead to more consumption, thereby helping companies.

What type of GST is proposed for India?

India is planning to implement a dual GST system. Under dual GST, a Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST) will be levied on the taxable value of a transaction.

Will this be an extra tax?

It will not be an additional tax. CGST will include central excise duty (Cenvat), service tax, and additional duties of customs at the central level; and value-added tax, central sales tax, entertainment tax, luxury tax, octroi, lottery taxes, electricity duty, state surcharges related to supply of goods and services and purchase tax at the State level.

What will be the rate of GST?

The combined GST rate is being discussed by government. The rate is expected around 14-16 per cent. After the total GST rate is arrived at, the States and the Centre will decide on the CGST and SGST rates.

Currently, services are taxed at 10 per cent and the combined charge indirect taxes on most goods is around 20 per cent.

Will goods and services cost more after this tax comes into force?

The prices are expected to fall in the long term as dealers might pass on the benefits of the reduced tax to consumers.

Why are some States against GST; will they lose money?

The governments of Madhya Pradesh, Chhattisgarh and Tamil Nadu say that the information technology systems and the administrative infrastructure will not be ready by April 2010 to implement GST. States have sought assurances that their existing revenues will be protected.

The central government has offered to compensate States in case of a loss in revenues.

Some States fear that if the uniform tax rate is lower than their existing rates, it will hit their tax kitty. The government believes that dual GST will lead to better revenue collection for States.

However, backward and less-developed States could see a fall in tax collections. GST could see better revenue collection for some States as the consumption of goods and services will rise.

What are the items on which GST may not be applied?

Alcohol, tobacco, petroleum products are likely to be out of the GST regime.

What the Copenhagen climate summit is all about

On December 7, 2009, environment ministers and officials met in Copenhagen for the United Nations climate conference to thrash out a successor to the Kyoto protocol. The conference, held at the modern Bella Center, ran for two weeks. 192 countries have signed the climate change convention.

Developing countries, including India and China, believe it is the responsibility of wealthy industrialized nations such as the United Kingdom and the United States to set a clear example on cutting carbon emissions.

This may interest you that the US had rejected the 1997 Kyoto Protocol, with the then US arguing that the 5 per cent reductions required by Kyoto would ‘wreck the American economy’.

However, Copenhagen sees a glimmer of hope on President Barack Obama’s stated intention to achieve an 80 per cent reduction of greenhouse gas emissions by 2050. Some people have even named the event, the‘Hopenhagen’ Summit.

How will Global Warming impact India?

Asian megadeltas, such as the Ganga-Brahmaputra delta, are at risk because of large populations and high exposure to sea-level rise, storm surge and river flooding. Also, the Himalayan glaciers can melt leading to flooding, rock avalanches, disruption of water sources.

In tropical areas, crop yield is projected to decrease, even with relatively modest rises of 1-2 degrees centigrade in local temperature, increasing the risk of hunger. The changes in health will be most felt by those least able to adapt, such as the poor, the very young and the elderly.

What has India done till date?

India is doing its bit with the National Action Plan on Climate Change (NAPCC) which includes 8 missions — solar, enhanced energy efficiency, sustainable habitat, water, sustaining the Himalayan ecosystem, green India, sustainable agriculture, and strategic knowledge for climate change.

India has also reportedly offered to cut energy intensity of its emissions by 20-25 per cent following similar moves from the US and China. Energy intensity means energy used per unit of income or output. This means that emissions will increase but slowly.

An emission intensity is the average emission rate of a given pollutant from a given source relative to the intensity of a specific activity.

What do the US and China announcements on voluntary cuts imply?

The Centre for Science and Environment (CSE) said that for the US, the emission cap translates into a mere 3 per cent reduction below the 1990 levels while science demands that developed countries cut their emissions by 40 per cent below 1990 levels.

Besides, the US targets remain domestic and are not covered by a multilateral legally-binding agreement.

The CSE explains that China’s emissions will continue to grow but at a slower rate. How much is actually achieved will depend on the rate at which the Chinese economy grows.

In other words, if the economy grows at 7 per cent per annum, then the emissions of China, after accounting for the 40-45 per cent energy intensity reduction target will grow by 50 per cent over 2005 levels.

If the economy grows at 10 per cent per annum, then the emissions will increase by 150 per cent over 2005 levels.

But why should India feel the pressure?

India’s intensity of carbon dioxide or CO2 use is among the lowest in the world (and equal to that of Europe in 2007), and China’s is among the highest.

India’s trend decline in intensity is comparable to the world’s average. However, the centre categorically states that in no way do these ‘new’ targets put pressure on India to commit to any reduction target. The current Indian per capita emission is 1.1 tonne. For the US, this figure is more than 20 tonnes.

India’s energy intensity by unit of GDP has reduced from 0.3 kgoe (kilogramme of oil equivalent) per US$ GDP in PPP terms in 1980 to 0.16 kgoe currently. This is already lower than US and China and is comparable to Germany.

So, is the environment ministry moving away from India’s stance on climate change and G-77 principles?

The government has to engage with all players across the spectrum. It is working on the principle of common but differentiated responsibility but in keeping with the G-77 principles, has not accepted any legally-binding cuts.

That’s the Difference

Who doesn’t like bargains? And Panasonic just got one. They have signed as the jersey sponsor of the senior Indian football team. The Japanese electronic major shelled out a handsome Rs. 4.75 crores for a 3 year deal.

Handsome?!? Yeah, it’s football after all.

Not a bad start this, but when compared to cricket in India, the amount almost demeans the sport. Nike had paid BCCI, a whopping $ 43 million in 2005 for a 5 year kit contract with Indian cricket team.

BCCI is the richest and has the highest income of all the national cricket boards of the world. BCCI’s revenue crossed a Rs. 1000 crores mark in the 2008 fiscal. Thanks to global media rights deal with Nimbus worth $ 612 million, official sponsors deal with Air Sahara worth $ 70 million and another media rights deal with Zee for $ 219.5 million.

Their revenue grew manifolds but their tax return didn’t. Thanks to their recognition as a charitable society till very recently. Thanks to I.T department, which said “cricket is only incidental to their scheme of things” and removed the charity clause, BCCI has to pay a Rs. 120 crore as tax plus a penalty amount which is yet to be quantified.

That’s just a little dent for the mighty BCCI which has millions in the bank unlike our very own and very poor national game, Hockey which is not even able to pay it’s players their hard-earned salaries. Everybody knows about the ongoing fiasco which I guess can be discussed in the comments or can be referred from Mohit Banka’s post. :)

This is India. We love our cricket and don’t give a damn about other sports. That’s the difference…

Is ‘Sports==Cricket' in India??

Whether to continue with my athletics or not??? Question that usually bothered me or forced me to think a lot, 4 years back. The question that arises in everyone mind before getting into any sport other than cricket.

Is there a future of any other sport in INDIA?? except CRICKET

Seeing the condition of players in other sports be it out national game ‘hockey’, athletics, shooting, tennis etc somewhere it feels like ‘QUITING’ was the best decision and will remain the best decision for most of us.

• Sprint queen ‘PT USHA’ humiliation, 6th October, 2009 .
• No payment to hockey players since last year, went on strike boycotting the morning session and plotting fresh moves to get their ‘dues’ from Hockey India, 9th January, 2010 .
• Abhinav Bindra, India’s only individual Olympics gold medalist, wants to quit because of the attitude of India’s shooting federation, 16th January, 2010.
• Decision of Sania Mirza to quit tennis after her marriage, 15, January, 2010.

These are some of the examples. There are many more such incidences which are either hidden or forgotten by us ( may be because they were not related to ‘cricket’) that will put a big question mark \?/ over the growth prospective of any other sport in our country.

Ask yourself?? Will you be planning to represent INDIA in any other sport.

Why wait for MNP when you can have dual SIM for as low as Rs 50

THE lobby against number portability may be playing a losing game. A widget from China priced as low as Rs 50 is making the government’s dithering on the issue for four years meaningless now.

A chewing-gum sized device known as “dual sim card holder” can be placed under the battery of your mobile phone and that has a provision to hold another sim card, which can be activated whenever there is a need to call. This helps retain your number in use for many years and subscribe to a new operator who is giving away outgoing calls almost for free.

It eliminates the strain of carrying two mobile phones, one to receive calls and the other to call, or paying a higher price for a mobile phone that has the facility to hold two sim cards. The device can be used in most of the low-to-middle-end models of any handset maker.

Where do you get this? Your local phone recharge outlet, for anywhere between Rs 50 to Rs 200, depending on the handset model. One such product, photographed, is called the Yutong Doublecard, which comes with “six months of guaranty”.

“We source it from bulk dealers, who in turn procure it from Chinese manufacturers,”says a Ghaffar-based online retailer, Gyan Chand who has sold thousands of units in the past few months. Payment can be made online, or by depositing money into any State Bank of India branch.

Indian mobile phone customers are a pampered lot with probably the lowest tariff in the world as Japan’s NTT Docomo and Norway’s Telenor seek to establish themselves in the world’s fastest growing market which has over 517 million subscribers. Established companies in the industry may not be comfortable with number portability as customers could switch to new service providers where tariff is low and the network is not congested.

The device offers up to 25% margin for retailers. Checks suggest that 40% of incremental industry sim additions are due to multi sim usage by subscribers.

Moochwali

Fevicol advertisements have always been remembered for being really good. From “Fevicol ka mazboot jod hai, tutega nahi” to “dum laga ke haisha, zor laga kar haisha” to “pakde rehna, chhodna nahi”, these advertisement campaigns have had right impact on right people.

But the funny, memorable ’Moochwali’ Fevicol’s 50th Anniversary Ad has got something more to it. When given deep thought, I could interpret that the advertisement connects fantastically with changing stature of the Indian women who now stand equally with men.

The black and white ad film from Ogilvy and Mathers, depicts the life of a little girl who was unable to take off a moustache pasted on her upper lip during a play. The film traces her life, through her teenage, wedding, motherhood, death and rebirth, where she is born with the moustache intact. The ad closes with the punchline line “50 Saal Se Champion”.

And I like it…

“Consumer goods firms get makeover to blend with changing times”

2009 saw………..

consumer good firms bid farewell of more iconic brand ambassadors giving space for more innovative marketing strategies and revamped product lines……whether it was Onida’s horned devil, the green suited “monster” pushing Onida television sets — “neighbour’s envy, owner’s pride” — TO a bubbly couple or Hindustan Unilever’s Liril girls TO target the entire family.

Bajaj Auto decided to exit scooters business, which had become a household name with the “Hamara Bajaj” campaign.

Maggie, over-shadowing as a symbol of Nestle’s range of noodles……turned 25 creating its own food brand.

Ad-captured people’s imagination…… if the cuddly pug campaign of telecom major Airtel in 2008, this year saw the emergence of Zoozoo.

Dabur, for instance, reaped a rich harvest in 2009 as the company entered skincare, food and beverage segments and launched about 30 products across various geographies which accounted to 20% of their revenue.

Amway plans to re-launch some premium brands in small packages to suit the domestic market.

Innovative marketing strategies, along with fiscal stimulus packages, helped consumer durables and fast-moving consumer goods segments record robust growth of during the year despite the economic slowdown…….

about Rs.32,000-crore ($6.4 billion) consumer durables industry grew 12-15 percent in 2009 and is expected to grow by 15-20 percent next year on the back of economic recovery.

the fast-moving consumer goods sector worth Rs.120,000 crore ($24 billion) in INDIA, coped well with recent challenges and grew 15 percent over the past year as companies downsized packaging as a cost-cutting measure during slowdown.

“The durable industry saw a tremendous growth of almost 28 percent,”

So how does WE see 2010 panning out???………….

They’ve Got Money. A Hell Lot of It.

Who buys a Micromax?? TA Associates, a PE major just did. They have bought a minority stake in ‘the xtreme in telecommunication’ for about Rs. 225 crores ONLY. This is one of the largest technology investment in India in the last year. The stake sold is ascertained to be less than 20% valuing the company at excess of Rs. 1100 crores.

The fund raised will help Micromax expand its handset business to Africa and Latin America. The company is all set to launch operations in Nepal later this month.

The Company sold 7 lakh handsets in December 2009 alone and are targeting selling a million by the year end. Micromax will then stand third in sales after Nokia and Samsung. Only 18 months since inception, Micromax targetting Rs. 1500 crores in revenues in the current fiscal. The company has 26 models rolled out in the market, out of which 23 are dual SIM. The company is leader in selling handsets with QWERTY keypad selling 80,000 handsets a month.

My perspective of the deal: I still prefer my HTC for use. But when it comes to business and finance, Micromax sure is Xtreme.

IIP Out. I Hate Statistics!

IIP numbers for the month of November 2009 are out and they are remarkable. IIP surged to a smart 11.7%. The general index now stands at 298.9. Remember the November 2008 IIP numbers?? An abysmal 2.4% but that was when the world economy was deep into recession which of course affected India too.

IIP for September and October 2009 was 9.1% and 10.3%, respectively.

Markets reacted in a good way to this ‘better-than-expected’ number. Sensex rose 70 points and Nifty rose 15 points when the number news broke out. Though, global cues ultimately weighed out, pushing down these benchmark indices. Sensex lost 104 points to close at 17,422.51. Nifty tumbled down 35 points to end the day at 5,210.40.

On the face of it, the latest IIP number seems to be brilliant but this on a month-on-month seasonally adjusted basis is about only 1.5%. Anyways, India is nowhere near China’s striking 19.2% YoY IIP numbers for the month of November 2009.

Don’t know what IIP is??

Index of Industrial Production (IIP) is an abstract number, the magnitude of which represents the status of production in the industrial sector for a given period of time as compared to a reference period of time.

IIP in simplest terms is an index which facet out the growth of various sectors in an economy. These numbers are released by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation (MOSPI)

In India, the base year has been fixed at 1993-94, which means IIP for 1993-94 stood at 100.